Asset allocation decision

Asset allocation decision

The decision regarding how an institution's funds should be distributed among the major classes of assets in which it may invest.
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The spin-off will provide investors with the ability to control their asset allocation decision, including the opportunity to invest in a high quality, well-capitalised REIT focused on Houston that is positioned to take advantage of the expected recovery in the energy sector.
The asset allocation decision process is similar to what occurs with "robo-advisors," where funds are managed and allocated by computer-based investment models.
Gannon oversees the examination of pension plans from an actuarial perspective, and helps advisory and investment outsourcing clients reach an effective asset allocation decision by bringing together actuarial liabilities and available asset classes in a risk-reward framework.
We use ALM to address the asset allocation decision for a general long-term liability with an investment guarantee.
(8) Some commentators advocate making the asset allocation decision on an aftertax basis.
* Section 404(c) was added to ERISA in October 1992 with the intent of relieving the employer from responsibility for the employee's asset allocation decision, but employers found it difficult to comply with all of the requirements.
While active portfolio management can certainly add value, several studies have shown that an initial asset allocation decision can account for up to 90 percent of a portfolio's performance.
Once the asset allocation decision has been made, the next step is to select individual securities (stocks, bonds, etc.) or mutual funds within each asset class.
Research shows that it's the asset allocation decision that accounts for more than 90% of the variation between returns on different investment portfolios.
Despite the complexities, the ultimate success or failure rests to a surprising degree on just one decision: the asset allocation decision. This article examines the importance of the asset allocation decision, determinants of asset allocation choices, and the historical shift toward equities.
If it's appropriate for the portfolio to contain cash, we'll assist the client in making that asset allocation decision. Cash can be maintained within a portfolio more cost-effectively by the equity manager."